In its latest newsletter, investment firm and hedge fund company, Pantera Capital has compared the fundamental differences between the 2017 crypto market rally with the current situation. Analysts at the firm also predicted that BTC will reach $115,212 by Aug. 1. The hedge fund further believes that investors now understands the crypto ecosystem more clearly this time.
Pantera previously predicted the price action of Bitcoin in Jan. 2021 back in April 2020. The firm now has predicted that Bitcoin will peak at $115,000 in Aug. 2021.
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The hedge fund also compares the current crypto market rally with that of 2017 and finds that the improvement in the current situation has to do with the overall market composition and where value is located. As per the report, majority of the value of the current market is consolidated in Bitcoin (BTC) and Ether (ETH).
A possible reason for this includes institutional investors' focus on Bitcoin (BTC) as an entry point in the crypto market and the increased DeFi sector with its underlying asset ETH. Both Bitcoin (BTC) and Ether (ETH) account for 86% of the market volume, as opposed to roughly 50% in 2017.
Pantera Capital started its January newsletter by highlighting the price movements of bitcoin since the halving in May 2020. After explaining the theoretical effects of the halving on bitcoin supply and pricing, the company presented a somewhat accurate prediction of the cryptocurrency.
As per the report, the crypto market lagged by as much as 15 weeks during the summer of 2020 in comparison to the projected price set by Pantera. By the end of Dec. 2020, the market price of bitcoin was almost equal to Pantera’s prediction. By mid-January, the projection was behind by one week.
Pantera has projected a price of around $45,268 on Feb. 15, 2021. Meanwhile, on Aug. 1, 2021, Pantera has predicted that the price of Bitcoin (BTC) will peak at $115,212.